Placing Under A Single Governmental Authority All Activities Relating To The Discovery, Development And Production Of Indigenous Petroleum Resources

Case Overview and Summary

Summary of Presidential Decree No. 782

Objective and Policy
- To hasten the discovery, development, and production of indigenous petroleum resources through government and/or private resources, local and foreign, under arrangements that will yield maximum benefit to the Filipino people and revenues to the government for national economic development. (Preamble)
- To assure fair returns to participating enterprises, particularly those that will provide necessary services, financing, and technology, and fully assume all exploration risks. (Preamble)

Transfer of Powers and Functions
- The powers and duties vested in the Secretary of Natural Resources under the Petroleum Act of 1949 are transferred to the Petroleum Board created under Presidential Decree No. 87, as amended. (Section 1)
- The functions of the Petroleum Division of the Petroleum Technical Committee in the Bureau of Mines relative to the implementation of the Petroleum Act of 1949, together with applicable appropriations, records, equipment, and property, are transferred to the Petroleum Board. (Section 1)

Conversion of Concessions and Applications
- All holders of valid and subsisting petroleum exploration concessions or published petroleum exploration concession applications under the Petroleum Act of 1949 shall convert their concession or concession application to a service contract under the terms and provisions of Presidential Decree No. 87, either alone or with any local or foreign oil company or companies, within a period of one (1) year from the effective date of this Decree. (Section 2)
- Any concession or concession application not converted within the one (1) year period shall be deemed automatically cancelled, and the area covered thereby shall become part of the National Reserve Area. (Section 2)

Rules and Regulations
- The Petroleum Board shall issue rules and regulations to govern the conversion of concessions and applications to service contracts. (Section 3)

Repealing Clause
- All laws, executive orders, and regulations inconsistent with this Decree are hereby repealed or modified accordingly. (Section 4)

Effectivity
- This Decree shall take effect immediately. (Section 5)